( 1 ) THE respondent Shri Sinha Govindji is the proprietor of Messrs Sinha Govindji carrying on business at Bellary in Mysore State. The said firm had an office in Bombay. On 18th January, 1960, the respondent was granted a licence for import of 8 tons of Cellulose Nitrate sheets, rods. etc. of the value of about Rs. 75,000. 00. The licence was "actual User s licence", so that the goods could be consumed by the respondent himself, and he was not entitled to sell the same. He imported 44 cases of the material from London and the delivery thereof was taken in July, 1961. In December, 1961, the respondent addressed a letter to one Shri Bijay Sankar Bhargave of Sankar Brothers, Delhi, offering to sell the material at Rs. 7. 00 per pound. This letter was sent by the respondent from Bombay to the purchaser in Delhi. Shri Bhargava accepted the offer by a letter which he sent from Delhi to the respondent at Bombay. According to the complaint, Shri Bhargava instructed the respondent to sent the goods offered to Delhi. On 6th January, 1962, the respondent sent one case containing the goods purchased under the said licence, through Bombay Goods Carrier, Private, Limited, and t